Thw Wall Street Journal has this report on the nations housing markets. "With the key spring selling season about to get under way, the inventory of homes on the market is climbing sharply in a number of major cities. It is the latest sign that the balance of power between buyers and sellers is shifting as the once red-hot housing market continues to cool. The slowdown is affecting both existing homes and new homes."

"Nationwide, there were 2.8 million existing houses and condominiums on the market at year end. That is down slightly from November's 2.9 million listings, but up 26% from a year earlier. Adjusted for seasonal variations, inventories have climbed 38% since April."

"In Phoenix, where inventories have climbed steadily since last spring, open houses are attracting a steady stream of lookers, says Charles McLean. 'But people are taking their time,' he says. 'They're not just jumping and writing a contract.' Mr. McLean says that if a listing doesn't attract enough traffic, within 30 days they will consider lowering the price."

"'The creativity to sell homes is coming back,' says Dan Elsea. 'We haven't needed it for years.'"

"With the number of listings rising and the pace of sales slowing, there is now a 5.1-month supply of existing homes on the market, according to the NAR. Historically, a 5.5-to-six-month supply has been considered a balanced market, says NAR Chief Economist David Lereah. But with the Internet making shopping for a home easier, he says, it is no longer clear just what a balanced market is."

"Another uncertainty: how much of the increase in inventories is due to speculators looking to sell, and whether they will be more willing to cut prices as the market cools. Brokers in markets such as Phoenix and South Florida say they've seen an increase in investor-owned properties for sale."

"As orders slow, builders are engaged in heavy discounting and promotional activity, particularly among homes for the second-time, move-up and luxury buyer. A survey conducted last month by the NAHB found that 64% of builders are now using incentives such as offers to pay closing costs and free upgrades; 19% are cutting prices."

"The supply of unoccupied condominiums is also climbing in many areas. In New York's Westchester County, the number of condos on the market jumped to 617 at the end of 2005 from 397 a year earlier. In the Boston area, the number of condos listed at the end of January was 5,114, up from 2,876 a year earlier. In the Washington, D.C., metro area, new-home inventory climbed by more than 900% to 2, 413 in the fourth quarter over the same period a year earlier, largely because of the completion of several condo projects."